Humber/Ontario Real Estate Course 2 Exam Practice

Which statement about an equity housing co-operative in Ontario is true?

1. It does not have share capital.

2. It has share capital.

3. It partly relies on provincial government funding.

4. It is governed by the Condominium Act.

The correct answer is: It has share capital.

An equity housing co-operative in Ontario has share capital, which means that members purchase shares in the co-operative in order to become part owners of the property. These shares represent their ownership stake in the co-operative and give them the right to occupy a unit within the co-operative. The share capital provides financial resources for the co-operative to operate and maintain the property. Option A is incorrect because equity housing co-operatives do have share capital. Option C is incorrect because equity housing co-operatives do not rely on provincial government funding as their primary source of financing. Option D is incorrect because equity housing co-operatives are governed by the Co-operative Corporations Act, not the Condominium Act.